When a technical indicator moves in the same direction as price, that's convergence and confirms the trend.
When a technical indicator moves in the same direction as price, that's convergence and confirms the trend. When they move in opposite directions, that's divergence and often signals a reversal. Bearish divergence (price up, indicator down) is a classic warning sign of a coming drop.
A momentum indicator that shows the relationship between two moving averages of a price.
Studying price charts and patterns to predict future movements.
A period when smart money quietly buys up an asset before a major price move.
The average yearly return on an investment, calculated to account for compounding.
Profiting from price differences of the same asset across different markets.
The lowest price a seller is willing to accept for an asset.
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